On 1 October 2013, Hoy had $2·5 million of equity shares of 50 cents each in issue.

No new shares were issued during the year ended 30 September 2014, but on that date there were outstanding share
options to purchase 2 million equity shares at $1·20 each.

The average market value of Hoy’s equity shares during the year ended 30 September 2014 was $3 per share.

Hoy’s profit after tax for the year ended 30 September 2014 was $1,550,000.

In accordance with IAS 33 Earnings per Share, what is Hoy’s diluted earnings per share for the year ended 30 September 2014?

A     25·0 cents
B     22·1 cents
C     31·0 cents
D     41·9 cents